- Silver prices extend recovery moves from $26.48 after flashing the heaviest losses in the week.
- RSI normalization suggest further run-up, monthly resistance line questions the bulls.
- Sellers will have a bumpy road with 21-day EMA and one-month-old rising trend line acting as nearby supports.
Silver picks up bids near $26.90, up 0.60% on a day, amid the Asian session on Thursday. The white metal dropped to the low of $26.48 the previous day but couldn’t end the day below 10-day EMA. The resulted pullback took clues from RSI’s gradual moves to the normal 70-30 area while increasing the odds of the further upside.
However, a downward sloping trend line from August 07 near $28.10 becomes necessary for the commodity to attack $28.50 and the $29.00 round-figures during the further upside.
If at all the quote manages to cross $29.00, the multi-month top flashed earlier in the month, around $29.85, followed by the $30.00 threshold, will challenge the bulls.
On the downside, a daily closing below 10-day EMA level of $26.75 will aim for 21-day EMA close to $25.50. Though, any more declines past-$25.50 will need a strong break below an ascending trend line from July 18, at $25.00 now, to challenge the monthly bottom surrounding $23.40/45.
Silver daily chart